Asked by Jenna Raney on May 13, 2024
Verified
If cash dividends of $135,000 were paid during the year and the company sold 1,000 shares of common stock at $30 per share, the statement of cash flows would report net cash flow from financing activities as $165,000.
Financing Activities
Transaction and events in a business's operations that involve obtaining resources from creditors and repaying those resources or obtaining capital from owners and providing them with a return on, and of, their investment.
Cash Dividends
Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.
Net Cash Flow
The variance between money coming in and going out of a business during a given timeframe.
- Skillfully determine and organize cash inflows and outflows in the correct parts of the statement of cash flows.
Verified Answer
Learning Objectives
- Skillfully determine and organize cash inflows and outflows in the correct parts of the statement of cash flows.
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